Skip to main content CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. Investor Presentation | Shale Experts
Loading...
Pm

CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc.

Hercules Offshore, Inc. · Feb 6, 2012 · 36 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 1
    World Class Credit Suisse Energy Summit 2012 February 6 10, 2012
  2. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 2
    World Class Overview
  3. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 3
    A Global Leader in Shallow Water Services Jackups Liftboats 42 Jackups 64 Liftboats Largest jackup provider in the U.S. Gulf of Mexico; 5th largest Largest liftboat provider provider worldwide (1) worldwide Operations on three…
  4. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 4
    Offshore Production Dominated by the Shallow Water Over the past decade, offshore has grown in its importance to global oil supply, from 22% in 2000 to 33% in 2010 The majority of offshore production is in the shallow water Shallow…
  5. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 5
    Positive Shallow Water Trends During the next five years (2011 2015): Offshore production expected to account for 35% of global oil supply in 2015 Shallow water production is expected to account for over two-thirds of total…
  6. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 6
    Global Footprint Global Summary Liftboats 64 Jackup Rigs 42 Inland Barges 17 Platform Rig 1 U.S. Gulf of Mexico U.S. Gulf Coast Jackup Rigs 34 Liftboats 40 Inland Barges 17 (1) Vietnam Mexico Jackup Rig 1 Platform…
  7. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 7
    Strong Health, Safety and Environmental Record Total Recordable Incident Rate (TRIR)(1) Lost Time Incident Rate (1) (LTIR) (2) 2.50 0.60 0.55 2.17 0.53 2.05 0.50 2.00 0.46 0.49 0.45 1.77 1.82 0.40 0.37 1.48 0.39 1.50 0.35…
  8. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 8
    World Class Business Outlook
  9. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 9
    Domestic Offshore Tight industry supply/demand for GOM Jackup Backlog and Dayrates (1) U.S. GOM jackups 8.0 150 Leading edge dayrates on the rise 135 7.0 GOM Backlog per Marketed Rig (Months) 120 GOM 200'MC…
  10. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 10
    U.S. GOM Supply vs. Demand U.S. GOM Jackup Supply and Demand as of January 31, 2012 90 72 93% Industry Utilization Number of Rigs of Marketed Rigs 60 44 42 39 30 (28) (2) 0 Current Less: Cold Marketed Planned Jackup…
  11. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 11
    U.S. GOM Production Shift to Liquids U.S. Gulf of Mexico Shelf Oil/Condensate Production Mix (1) 40% 35% 30% 25% 20% 15% 10% 06 07 08 09 10 06 07 08 09 10 11 6 7…
  12. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 12
    Domestic Customer Base Exposure to Crude Oil Key Domestic Customers Liquids Mix (Shallow Water Production Only) Apache 38% Chevron 39% Dynamic Offshore 46% Energy XXI 63% Source: Public disclosures Key customers have…
  13. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 13
    Commodity Prices Versus Rig Rates Oil & Gas Price vs. GOM Dayrates (1) 120,000 15.00 Oil & Gas Equivalent Prices (/mcfe) 100,000 12.00 GOM 200' MC Dayrate 80,000 9.00 60,000 6.00 40,000 3.00 20,000 - - 07…
  14. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 14
    Shallow Water Permitting Activity U.S. GOM Shallow Water Total Permits Approval History (1) 50 Post Global Credit Crisis - Macondo Lehman Average Monthly Permit Approvals 40 30 20 10 0 1Q07 2Q07 3Q07…
  15. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 15
    Reactivation Matrix Capital Payback Analysis (1) (months to payback) Dayrate Assumption 55,000 60,000 65,000 70,000 75,000 8 12.0 9.9 8.4 7.3 6.4 Reactivation Capital Cost 9 13.5 11.1 9.4 8.2 7.2 ( in millions) 10…
  16. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 16
    Domestic Offshore Potential Earnings Upside Incremental EBITDA Analysis (1) ( in millions, except dayrate) Increase in Average Dayrate 5,000 10,000 15,000 20,000 25,000 18 28 56 84 112 140 Number of Rigs Working 19 37 67…
  17. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 17
    What a Difference a Year Makes in the U.S. GOM Jan 2011 (1) Jan 2012 (2) Contract Status 10 of 11 rigs contracted 18 of 18 rigs contracted Backlog 65 days 139 days 39,000 50,000 Dayrate (Fleet) Flat outlook Rising outlook…
  18. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 18
    International Offshore Current oil prices are supportive of International Jackup Backlog and Dayrates (1) strong growth in international capital spending 16.0 200 14.0 175 National Oil Companies have been Middle East 300'IC…
  19. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 19
    International Drilling Outlook FY 2011 FY 2012 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Hercules 185 W. Africa 59-61k 59-61k Platform 3 Mexico 54-56k 53-55k 49-51k 49-51k Middle Hercules 261 137-139k 83-85k 83-85k East Middle Hercules 262…
  20. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 20
    Transitional Period for International Offshore Rig Downtime Period Description Expected Return Hercules 185 Oct 2011 Feb 2012 Leg Repairs March 2012 Hercules 261 Dec 2011 Mar 2012 Contract-Related Upgrade March 2012 Hercules 262…
  21. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 21
    Discovery Offshore Fleet renewal and exposure to premium jackup market through 28% ownership of and management agreements with Discovery Offshore Discovery jackup rig specifications to rank in the top 7% of global rig fleet upon…
  22. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 22
    International Liftboats Largest liftboat provider in West Africa and established presence in Middle East Well-established liftboat market and long term demand growth drivers in West Africa, tempered by competition creep Extended…
  23. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 23
    Domestic Liftboats Currently experiencing typical seasonal downturn in activity levels Growing contribution from plugging and abandonment activity, accounting for 21% of YTD through September revenue, up from 7% in 2010 December…
  24. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 24
    World Class Conclusion
  25. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 25
    Hercules Strategy Remains Consistent Maintain Leading Position Diversify Geographically in Core Businesses Opportunistic Growth Focus on And Fleet Optimization Shallow Water Assets Maintain Status as an Efficient, Low-Cost…
  26. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 26
    Strategic Progress Slowed by Market Challenges Market Challenges Global economic and financial market meltdown 2008 Global drilling activity slowdown 2009 Macondo well blowout and ensuing drilling moratorium/regulation 2010…
  27. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 27
    Investment Highlights Rising dayrates and utilization for U.S. GOM jackups driven by limited supply Customer shift toward liquids-rich drilling propelling U.S. GOM demand Significant operating exposure to improving U.S. GOM, with…
  28. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 28
    APPENDIX 28 World Class
  29. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 29
    Domestic Offshore Marketed Rig Data Domestic Offshore Fleet Status as of 01/19/2012 Contract Est. Duration (1) Rig Name Rig Type Location Customer / Status Dayrate (000s) Days Date Hercules 200 200' - MC, TD GOM Apache 57-59 90…
  30. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 30
    Domestic Offshore Marketed Rig Data (continued) Domestic Offshore Fleet Status as of 01/19/2012 (continued) Contract Est. Duration (1) Rig Name Rig Type Location Customer / Status Dayrate (000s) Days Date Pisces 57-59 42 03/01/12…
  31. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 31
    International Offshore Marketed Rig Data International Offshore Fleet Status as of 01/19/2012 Contract Est. Duration (1) Rig Name Rig Type Location Customer / Status Dayrate (000s) Days Date Hercules 170 170' - ILC, TD Bahrain Warm…
  32. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 32
    Maximum Total Leverage Ratio Table Period Total Leverage Ratio April 1, 2011 June 30, 2011 6.75 to 1.00 July 1, 2011 September 30, 2011 7.50 to 1.00 October 1, 2011 December 31, 2011 7.75 to 1.00 January 1, 2012 March 31, 2012…
  33. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 33
    Minimum Fixed Charge Coverage Ratio Table Consolidated Fixed Charge Period Coverage Ratio July 1, 2009 December 31, 2011 1.00 to 1.00 January 1, 2012 March 31, 2012 1.05 to 1.00 April 1, 2012 June 30, 2012 1.10 to 1.00…
  34. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 34
    GOM Shallow Water Operator Data Top 20 Shallow Water (0-350ft) GOM Lease Holders Working % of Total Apache Corp Operator Jackup Contracted Chevron Count Rig Count Stone Energy Apache Corp 7 18% McMoran O&G Chevron 6 16% W&T…
  35. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 35
    Summary of Discovery Offshore Structure Overview Structure Discovery Offshore is a newly established Luxembourgbased company Investors Hercules Offshore Constructing two ultra highspecification Keppel FELS Super A jackup rigs…
  36. CREDIT SUISSE ENERGY SUMMIT – Hercules Offshore, Inc. – slide 36
    World Class

From the store

Browse maps, data & reports in the Shale Experts store